StoneX initiates coverage on Robinhood with a Buy rating and a $170 target price.

According to Huoxing Finance, StoneX analyst Mark Palmer initiated coverage of Robinhood with a Buy rating and a price target of $170, implying approximately a 45% upside from Tuesday’s closing price of $117.34. Palmer noted that Robinhood is expanding beyond retail trading services by acquiring exchanges and blockchain infrastructure with software-like margins. Robinhood Chain launched its mainnet on July 1, and over the past 24 hours, its gas fee revenue exceeded that of all other Ethereum Layer 2 networks combined. As of September 3, the chain generated daily fee revenue of approximately $4.59 million, with an annualized revenue nearing $390 million as of August 29. StoneX forecasts that Robinhood Chain could generate $980 million in revenue by fiscal year 2029, with an 85% profit margin. In the prediction market segment, Robinhood traded 13.6 billion event contracts in the second quarter, including over 5 billion during the World Cup, generating approximately $156 million in revenue—a 50% sequential increase. On Tuesday, Robinhood announced partnerships with Crypto.com and OG.com, taking equity stakes in both companies and routing a portion of its event contracts through OG.com. Previously, Bernstein analysts also maintained a Outperform rating on Robinhood with a price target of $160.